diff --git a/Doc/library/collections.rst b/Doc/library/collections.rst
index 169293f..0503ad29c 100644
--- a/Doc/library/collections.rst
+++ b/Doc/library/collections.rst
@@ -279,8 +279,7 @@
       Section 4.6.3, Exercise 19*\.
 
     * To enumerate all distinct multisets of a given size over a given set of
-      elements, see :func:`combinations_with_replacement` in the
-      :ref:`itertools-recipes` for itertools::
+      elements, see :func:`itertools.combinations_with_replacement`.
 
           map(Counter, combinations_with_replacement('ABC', 2)) --> AA AB AC BB BC CC
 
diff --git a/Doc/library/itertools.rst b/Doc/library/itertools.rst
index d281278..aba1e25 100644
--- a/Doc/library/itertools.rst
+++ b/Doc/library/itertools.rst
@@ -133,6 +133,53 @@
    The number of items returned is ``n! / r! / (n-r)!`` when ``0 <= r <= n``
    or zero when ``r > n``.
 
+.. function:: combinations_with_replacement(iterable, r)
+
+   Return *r* length subsequences of elements from the input *iterable*
+   allowing individual elements to be repeated more than once.
+
+   Combinations are emitted in lexicographic sort order.  So, if the
+   input *iterable* is sorted, the combination tuples will be produced
+   in sorted order.
+
+   Elements are treated as unique based on their position, not on their
+   value.  So if the input elements are unique, the generated combinations
+   will also be unique.
+
+   Equivalent to::
+
+        def combinations_with_replacement(iterable, r):
+            # combinations_with_replacement('ABC', 2) --> AA AB AC BB BC CC
+            pool = tuple(iterable)
+            n = len(pool)
+            if not n and r:
+                return
+            indices = [0] * r
+            yield tuple(pool[i] for i in indices)
+            while 1:
+                for i in reversed(range(r)):
+                    if indices[i] != n - 1:
+                        break
+                else:
+                    return
+                indices[i:] = [indices[i] + 1] * (r - i)
+                yield tuple(pool[i] for i in indices)
+
+   The code for :func:`combinations_with_replacement` can be also expressed as
+   a subsequence of :func:`product` after filtering entries where the elements
+   are not in sorted order (according to their position in the input pool)::
+
+        def combinations_with_replacement(iterable, r):
+            pool = tuple(iterable)
+            n = len(pool)
+            for indices in product(range(n), repeat=r):
+                if sorted(indices) == list(indices):
+                    yield tuple(pool[i] for i in indices)
+
+   The number of items returned is ``(n+r-1)! / r! / (n-1)!`` when ``n > 0``.
+
+   .. versionadded:: 2.7
+
 .. function:: compress(data, selectors)
 
    Make an iterator that filters elements from *data* returning only those that
@@ -608,22 +655,6 @@
        s = list(iterable)
        return chain.from_iterable(combinations(s, r) for r in range(len(s)+1))
 
-   def combinations_with_replacement(iterable, r):
-       "combinations_with_replacement('ABC', 2) --> AA AB AC BB BC CC"
-       # number items returned:  (n+r-1)! / r! / (n-1)!
-       pool = tuple(iterable)
-       n = len(pool)
-       indices = [0] * r
-       yield tuple(pool[i] for i in indices)
-       while True:
-           for i in reversed(range(r)):
-               if indices[i] != n - 1:
-                   break
-           else:
-               return
-           indices[i:] = [indices[i] + 1] * (r - i)
-           yield tuple(pool[i] for i in indices)
-
     def unique_everseen(iterable, key=None):
         "List unique elements, preserving order. Remember all elements ever seen."
         # unique_everseen('AAAABBBCCDAABBB') --> A B C D
diff --git a/Lib/test/test_itertools.py b/Lib/test/test_itertools.py
index 16789d8..b1ba8c0 100644
--- a/Lib/test/test_itertools.py
+++ b/Lib/test/test_itertools.py
@@ -131,6 +131,76 @@
         self.assertEqual(len(set(map(id, combinations('abcde', 3)))), 1)
         self.assertNotEqual(len(set(map(id, list(combinations('abcde', 3))))), 1)
 
+    def test_combinations_with_replacement(self):
+        cwr = combinations_with_replacement
+        self.assertRaises(TypeError, cwr, 'abc')       # missing r argument
+        self.assertRaises(TypeError, cwr, 'abc', 2, 1) # too many arguments
+        self.assertRaises(TypeError, cwr, None)        # pool is not iterable
+        self.assertRaises(ValueError, cwr, 'abc', -2)  # r is negative
+        self.assertEqual(list(cwr('ABC', 2)),
+                         [('A','A'), ('A','B'), ('A','C'), ('B','B'), ('B','C'), ('C','C')])
+
+        def cwr1(iterable, r):
+            'Pure python version shown in the docs'
+            # number items returned:  (n+r-1)! / r! / (n-1)! when n>0
+            pool = tuple(iterable)
+            n = len(pool)
+            if not n and r:
+                return
+            indices = [0] * r
+            yield tuple(pool[i] for i in indices)
+            while 1:
+                for i in reversed(range(r)):
+                    if indices[i] != n - 1:
+                        break
+                else:
+                    return
+                indices[i:] = [indices[i] + 1] * (r - i)
+                yield tuple(pool[i] for i in indices)
+
+        def cwr2(iterable, r):
+            'Pure python version shown in the docs'
+            pool = tuple(iterable)
+            n = len(pool)
+            for indices in product(range(n), repeat=r):
+                if sorted(indices) == list(indices):
+                    yield tuple(pool[i] for i in indices)
+
+        def numcombs(n, r):
+            if not n:
+                return 0 if r else 1
+            return fact(n+r-1) / fact(r)/ fact(n-1)
+
+        for n in range(7):
+            values = [5*x-12 for x in range(n)]
+            for r in range(n+2):
+                result = list(cwr(values, r))
+
+                self.assertEqual(len(result), numcombs(n, r))           # right number of combs
+                self.assertEqual(len(result), len(set(result)))         # no repeats
+                self.assertEqual(result, sorted(result))                # lexicographic order
+
+                regular_combs = list(combinations(values, r))           # compare to combs without replacement
+                if n == 0 or r <= 1:
+                    self.assertEquals(result, regular_combs)            # cases that should be identical
+                else:
+                    self.assert_(set(result) >= set(regular_combs))     # rest should be supersets of regular combs
+
+                for c in result:
+                    self.assertEqual(len(c), r)                         # r-length combinations
+                    noruns = [k for k,v in groupby(c)]                  # combo without consecutive repeats
+                    self.assertEqual(len(noruns), len(set(noruns)))     # no repeats other than consecutive
+                    self.assertEqual(list(c), sorted(c))                # keep original ordering
+                    self.assert_(all(e in values for e in c))           # elements taken from input iterable
+                    self.assertEqual(noruns,
+                                     [e for e in values if e in c])     # comb is a subsequence of the input iterable
+                self.assertEqual(result, list(cwr1(values, r)))         # matches first pure python version
+                self.assertEqual(result, list(cwr2(values, r)))         # matches second pure python version
+
+        # Test implementation detail:  tuple re-use
+        self.assertEqual(len(set(map(id, cwr('abcde', 3)))), 1)
+        self.assertNotEqual(len(set(map(id, list(cwr('abcde', 3))))), 1)
+
     def test_permutations(self):
         self.assertRaises(TypeError, permutations)              # too few arguments
         self.assertRaises(TypeError, permutations, 'abc', 2, 1) # too many arguments
@@ -730,6 +800,10 @@
         self.assertEqual(list(combinations(range(4), 3)),
                          [(0,1,2), (0,1,3), (0,2,3), (1,2,3)])
 
+    def test_combinations_with_replacement(self):
+        self.assertEqual(list(combinations_with_replacement('ABC', 2)),
+                         [('A','A'), ('A','B'), ('A','C'), ('B','B'), ('B','C'), ('C','C')])
+
     def test_compress(self):
         self.assertEqual(list(compress('ABCDEF', [1,0,1,0,1,1])), list('ACEF'))
 
@@ -813,6 +887,10 @@
         a = []
         self.makecycle(combinations([1,2,a,3], 3), a)
 
+    def test_combinations_with_replacement(self):
+        a = []
+        self.makecycle(combinations_with_replacement([1,2,a,3], 3), a)
+
     def test_compress(self):
         a = []
         self.makecycle(compress('ABCDEF', [1,0,1,0,1,0]), a)
@@ -1312,21 +1390,6 @@
 ...     s = list(iterable)
 ...     return chain.from_iterable(combinations(s, r) for r in range(len(s)+1))
 
->>> def combinations_with_replacement(iterable, r):
-...     "combinations_with_replacement('ABC', 3) --> AA AB AC BB BC CC"
-...     pool = tuple(iterable)
-...     n = len(pool)
-...     indices = [0] * r
-...     yield tuple(pool[i] for i in indices)
-...     while 1:
-...         for i in reversed(range(r)):
-...             if indices[i] != n - 1:
-...                 break
-...         else:
-...             return
-...         indices[i:] = [indices[i] + 1] * (r - i)
-...         yield tuple(pool[i] for i in indices)
-
 >>> def unique_everseen(iterable, key=None):
 ...     "List unique elements, preserving order. Remember all elements ever seen."
 ...     # unique_everseen('AAAABBBCCDAABBB') --> A B C D
@@ -1407,29 +1470,6 @@
 >>> list(powerset([1,2,3]))
 [(), (1,), (2,), (3,), (1, 2), (1, 3), (2, 3), (1, 2, 3)]
 
->>> list(combinations_with_replacement('abc', 2))
-[('a', 'a'), ('a', 'b'), ('a', 'c'), ('b', 'b'), ('b', 'c'), ('c', 'c')]
-
->>> list(combinations_with_replacement('01', 3))
-[('0', '0', '0'), ('0', '0', '1'), ('0', '1', '1'), ('1', '1', '1')]
-
->>> def combinations_with_replacement2(iterable, r):
-...     'Alternate version that filters from product()'
-...     pool = tuple(iterable)
-...     n = len(pool)
-...     for indices in product(range(n), repeat=r):
-...         if sorted(indices) == list(indices):
-...             yield tuple(pool[i] for i in indices)
-
->>> list(combinations_with_replacement('abc', 2)) == list(combinations_with_replacement2('abc', 2))
-True
-
->>> list(combinations_with_replacement('01', 3)) == list(combinations_with_replacement2('01', 3))
-True
-
->>> list(combinations_with_replacement('2310', 6)) == list(combinations_with_replacement2('2310', 6))
-True
-
 >>> list(unique_everseen('AAAABBBCCDAABBB'))
 ['A', 'B', 'C', 'D']
 
diff --git a/Misc/NEWS b/Misc/NEWS
index 0284e1d..ee2e262 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -153,7 +153,8 @@
 
 - Issue #4863: distutils.mwerkscompiler has been removed.
 
-- Added a new function:  itertools.compress().
+- Added a new itertools functions:  combinations_with_replacement()
+  and compress().
 
 - Fix and properly document the multiprocessing module's logging
   support, expose the internal levels and provide proper usage
diff --git a/Modules/itertoolsmodule.c b/Modules/itertoolsmodule.c
index bee08de..f9d2ee8 100644
--- a/Modules/itertoolsmodule.c
+++ b/Modules/itertoolsmodule.c
@@ -1683,7 +1683,8 @@
 	PyObject_GC_UnTrack(lz);
 	Py_XDECREF(lz->pools);
 	Py_XDECREF(lz->result);
-	PyMem_Free(lz->indices);
+	if (lz->indices != NULL)
+		PyMem_Free(lz->indices);
 	Py_TYPE(lz)->tp_free(lz);
 }
 
@@ -1911,7 +1912,8 @@
 	PyObject_GC_UnTrack(co);
 	Py_XDECREF(co->pool);
 	Py_XDECREF(co->result);
-	PyMem_Free(co->indices);
+	if (co->indices != NULL)
+		PyMem_Free(co->indices);
 	Py_TYPE(co)->tp_free(co);
 }
 
@@ -2060,6 +2062,252 @@
 };
 
 
+/* combinations with replacement object *******************************************/
+
+/* Equivalent to:
+
+		def combinations_with_replacement(iterable, r):
+			"combinations_with_replacement('ABC', 2) --> AA AB AC BB BC CC"
+			# number items returned:  (n+r-1)! / r! / (n-1)!
+			pool = tuple(iterable)
+			n = len(pool)
+			indices = [0] * r
+			yield tuple(pool[i] for i in indices)   
+			while 1:
+				for i in reversed(range(r)):
+					if indices[i] != n - 1:
+						break
+				else:
+					return
+				indices[i:] = [indices[i] + 1] * (r - i)
+				yield tuple(pool[i] for i in indices)
+
+		def combinations_with_replacement2(iterable, r):
+			'Alternate version that filters from product()'
+			pool = tuple(iterable)
+			n = len(pool)
+			for indices in product(range(n), repeat=r):
+				if sorted(indices) == list(indices):
+					yield tuple(pool[i] for i in indices)
+*/
+typedef struct {
+	PyObject_HEAD
+	PyObject *pool;			/* input converted to a tuple */
+	Py_ssize_t *indices;    /* one index per result element */
+	PyObject *result;       /* most recently returned result tuple */
+	Py_ssize_t r;			/* size of result tuple */
+	int stopped;			/* set to 1 when the cwr iterator is exhausted */
+} cwrobject;
+
+static PyTypeObject cwr_type;
+
+static PyObject *
+cwr_new(PyTypeObject *type, PyObject *args, PyObject *kwds)
+{
+	cwrobject *co;
+	Py_ssize_t n;
+	Py_ssize_t r;
+	PyObject *pool = NULL;
+	PyObject *iterable = NULL;
+	Py_ssize_t *indices = NULL;
+	Py_ssize_t i;
+	static char *kwargs[] = {"iterable", "r", NULL};
+ 
+ 	if (!PyArg_ParseTupleAndKeywords(args, kwds, "On:combinations_with_replacement", kwargs, 
+					 &iterable, &r))
+		return NULL;
+
+	pool = PySequence_Tuple(iterable);
+	if (pool == NULL)
+		goto error;
+	n = PyTuple_GET_SIZE(pool);
+	if (r < 0) {
+		PyErr_SetString(PyExc_ValueError, "r must be non-negative");
+		goto error;
+	}
+
+	indices = PyMem_Malloc(r * sizeof(Py_ssize_t));
+	if (indices == NULL) {
+    		PyErr_NoMemory();
+		goto error;
+	}
+
+	for (i=0 ; i<r ; i++)
+		indices[i] = 0;
+
+	/* create cwrobject structure */
+	co = (cwrobject *)type->tp_alloc(type, 0);
+	if (co == NULL)
+		goto error;
+
+	co->pool = pool;
+	co->indices = indices;
+	co->result = NULL;
+	co->r = r;
+	co->stopped = !n && r;
+
+	return (PyObject *)co;
+
+error:
+	if (indices != NULL)
+		PyMem_Free(indices);
+	Py_XDECREF(pool);
+	return NULL;
+}
+
+static void
+cwr_dealloc(cwrobject *co)
+{
+	PyObject_GC_UnTrack(co);
+	Py_XDECREF(co->pool);
+	Py_XDECREF(co->result);
+	if (co->indices != NULL)
+		PyMem_Free(co->indices);
+	Py_TYPE(co)->tp_free(co);
+}
+
+static int
+cwr_traverse(cwrobject *co, visitproc visit, void *arg)
+{
+	Py_VISIT(co->pool);
+	Py_VISIT(co->result);
+	return 0;
+}
+
+static PyObject *
+cwr_next(cwrobject *co)
+{
+	PyObject *elem;
+	PyObject *oldelem;
+	PyObject *pool = co->pool;
+	Py_ssize_t *indices = co->indices;
+	PyObject *result = co->result;
+	Py_ssize_t n = PyTuple_GET_SIZE(pool);
+	Py_ssize_t r = co->r;
+	Py_ssize_t i, j, index;
+
+	if (co->stopped)
+		return NULL;
+
+	if (result == NULL) {
+                /* On the first pass, initialize result tuple using the indices */
+		result = PyTuple_New(r);
+		if (result == NULL)
+            		goto empty;
+		co->result = result;
+		for (i=0; i<r ; i++) {
+			index = indices[i];
+    			elem = PyTuple_GET_ITEM(pool, index);
+    			Py_INCREF(elem);
+    			PyTuple_SET_ITEM(result, i, elem);
+		}
+	} else {
+		/* Copy the previous result tuple or re-use it if available */
+		if (Py_REFCNT(result) > 1) {
+			PyObject *old_result = result;
+			result = PyTuple_New(r);
+			if (result == NULL)
+				goto empty;
+			co->result = result;
+			for (i=0; i<r ; i++) {
+				elem = PyTuple_GET_ITEM(old_result, i);
+    				Py_INCREF(elem);
+    				PyTuple_SET_ITEM(result, i, elem);
+			}
+			Py_DECREF(old_result);
+		}
+		/* Now, we've got the only copy so we can update it in-place CPython's
+		   empty tuple is a singleton and cached in PyTuple's freelist. */
+		assert(r == 0 || Py_REFCNT(result) == 1);
+
+        /* Scan indices right-to-left until finding one that is not
+         * at its maximum (n-1). */
+		for (i=r-1 ; i >= 0 && indices[i] == n-1; i--)
+			;
+
+		/* If i is negative, then the indices are all at
+           their maximum value and we're done. */
+		if (i < 0)
+			goto empty;
+
+		/* Increment the current index which we know is not at its
+           maximum.  Then set all to the right to the same value. */
+		indices[i]++;
+		for (j=i+1 ; j<r ; j++)
+			indices[j] = indices[j-1];
+
+		/* Update the result tuple for the new indices
+		   starting with i, the leftmost index that changed */
+		for ( ; i<r ; i++) {
+			index = indices[i];
+			elem = PyTuple_GET_ITEM(pool, index);
+			Py_INCREF(elem);
+			oldelem = PyTuple_GET_ITEM(result, i);
+			PyTuple_SET_ITEM(result, i, elem);
+			Py_DECREF(oldelem);
+		}
+	}
+
+	Py_INCREF(result);
+	return result;
+
+empty:
+	co->stopped = 1;
+	return NULL;
+}
+
+PyDoc_STRVAR(cwr_doc,
+"combinations_with_replacement(iterable[, r]) --> combinations_with_replacement object\n\
+\n\
+Return successive r-length combinations of elements in the iterable\n\
+allowing individual elements to have successive repeats.\n\
+combinations_with_replacement('ABC', 2) --> AA AB AC BB BC CC");
+
+static PyTypeObject cwr_type = {
+	PyVarObject_HEAD_INIT(NULL, 0)
+	"itertools.combinations_with_replacement",		/* tp_name */
+	sizeof(cwrobject),		/* tp_basicsize */
+	0,						/* tp_itemsize */
+	/* methods */
+	(destructor)cwr_dealloc,	/* tp_dealloc */
+	0,						/* tp_print */
+	0,						/* tp_getattr */
+	0,						/* tp_setattr */
+	0,						/* tp_compare */
+	0,						/* tp_repr */
+	0,						/* tp_as_number */
+	0,						/* tp_as_sequence */
+	0,						/* tp_as_mapping */
+	0,						/* tp_hash */
+	0,						/* tp_call */
+	0,						/* tp_str */
+	PyObject_GenericGetAttr,	/* tp_getattro */
+	0,						/* tp_setattro */
+	0,						/* tp_as_buffer */
+	Py_TPFLAGS_DEFAULT | Py_TPFLAGS_HAVE_GC |
+		Py_TPFLAGS_BASETYPE,	/* tp_flags */
+	cwr_doc,				/* tp_doc */
+	(traverseproc)cwr_traverse,	/* tp_traverse */
+	0,						/* tp_clear */
+	0,						/* tp_richcompare */
+	0,						/* tp_weaklistoffset */
+	PyObject_SelfIter,		/* tp_iter */
+	(iternextfunc)cwr_next,	/* tp_iternext */
+	0,						/* tp_methods */
+	0,						/* tp_members */
+	0,						/* tp_getset */
+	0,						/* tp_base */
+	0,						/* tp_dict */
+	0,						/* tp_descr_get */
+	0,						/* tp_descr_set */
+	0,						/* tp_dictoffset */
+	0,						/* tp_init */
+	0,						/* tp_alloc */
+	cwr_new,				/* tp_new */
+	PyObject_GC_Del,		/* tp_free */
+};
+
+
 /* permutations object ************************************************************
   
 def permutations(iterable, r=None):
@@ -3191,6 +3439,7 @@
 	char *name;
 	PyTypeObject *typelist[] = {
 		&combinations_type,
+		&cwr_type,
 		&cycle_type,
 		&dropwhile_type,
 		&takewhile_type,